Technical Analysis: LFEX DataSalmon Miami FoB ‘D’Trim Index, 23rd June 2023

David Nye - The London Fish Exchange

Published: 26th June 2023

This Article was Written by: David Nye - The London Fish Exchange

  

The Miami FoB Index fell 4.65% in the previous week of trading. The Miami FoB Index broke through the $5.88 horizontal support zone and the price moving average near the same price.

The next support zone is $5.58 and there is also a different price moving average near $5.58 that should offer additional support for the Index. Notice the trend of lower lows and lower highs continues. This week’s price of $5.74 is lower than price low from December of 2022 at $5.78.

The Composite Index is near the lower end of its historical displacement range. The Composite Index has used this displacement in the summer of 2022 and May 2023 for support. The spread between the fast- and slow-moving averages on the Composite Index are stretched far apart. The spread between these two moving averages can continue to widen but at some point, the spread will begin to converge.

The RSI also has history at its current displacement. The RSI has used this displacement as a bottom four prior times. The RSI appears to form a double bottom when it does use this displacement as support. Double bottom, think of a W pattern in the RSI. There is still divergence between the Composite Index and the RSI since early May 2023.

  About This Analysis

About David Nye

David is a Senior Vice President in investment advisory with over 30 years of experience.

Based in Minnesota, USA he has a long history in technical analysis across a range of markets. David brings his experience to provide an independent insight into potential salmon pricing based on LFEX and DataSalmon data.

What is Technical Analysis?

Technical Analysis is used to try and identify price trends in the future. Analysts believe that by using factual past information (trading activity and price changes) it is possible to identify future price movement trends and is quite prevalent in commodity and forex markets but can be applied to any product.

Technical Analysis has been developing for over a century, and there are now hundreds of patterns and signals that have been created. They are often used in conjunction with other forms of research and analysis to help formulate, or support pricing trend opinions.

Purpose of the Analysis?

To provide an independent data-driven view of market pricing trends in the short and medium-term. As a potential tool, for users to access future pricing trends based on LFEX/DataSalmon derived market data.

How Does it Work?

On a regular basis (weekly), David will provide his independent analysis of LFEX and DataSalmon pricing data. The output will be to provide pricing trends based on the most up to date pricing received.

The analysis will show the expected trends and potential (price) levels, as well as other markers – for example, higher or lower price triggers that would affect the analysis of the trend – and what this might mean. It is data-driven, and will not, and does not, account for any other fundamental analysis, or weather or biological events for example. This is the same for any commodity product technical analysis.

Disclaimer

All information provided contains no guarantee whatsoever, especially of completeness, accuracy, timeliness or of the results obtained from the use of this information, and is provided without warranty of any kind, expressly or implied. In no event will, LFEX Ltd or DataSalmon, its member firms, or the partners, directors, officers, owners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information or for any consequential, special or similar damages, even if advised of the possibility of such damages. In no event and under no legal or equitable theory, whether in tort, contract, strict liability or otherwise, shall LFEX Ltd or DataSalmon be liable for any direct, indirect, special, incidental or consequential damages arising out of any use of the information contained herein, including, without limitation, damages for lost profits, loss of goodwill, loss of data, work stoppage, the accuracy of results, or computer failure or malfunction